Saudi National Bank’s US$1 billion loan adds to Middle East spree

Saudi National Bank is seeking a US$1 billion syndicated loan, continuing a borrowing rush by the kingdom’s lenders that are helping finance a US$2 trillion economic overhaul.

DBS Bank and Mitsubishi UFJ Financial Group are the mandated lead arrangers and bookrunners of the five-year deal, according to a person familiar with the matter. The loan is being syndicated to the broader market, including Asia, said the person, who asked not to be identified discussing a private matter.

SNB didn’t immediately respond to a request for comment.

The SNB deal is the latest in a series of funding transactions from the Middle East, notably from Saudi Arabia, tapping Asian liquidity as economies there press ahead with expansion plans and seek to diversify funding sources.

Middle Eastern borrowers raised around US$13.5 billion via syndicated loans across the Asia Pacific so far in 2025, a record high and nearly three times the amount garnered during the same period last year, according to Bloomberg-compiled data that tracks volumes since 1999.

The SNB offering pays an interest margin of 90 basis points over the benchmark Secured Overnight Financing Rate and is targeting lenders globally, the person said.

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Last month, Riyad Bank SJSC secured a US$1.5 billion syndicated loan, primarily from banks in Greater China, while Abu Dhabi’s sovereign wealth fund ADQ obtained a US$5 billion facility in October, targeting a similar pool of lenders. BLOOMBERG

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